The Agricultural Land Trust is listed on the Australian Securities Exchange and was established to focus on the ownership of rural property for the purpose of generating rental income and capital appreciation. Properties are funded through a combination of Unit holder equity and debt funding. The ratio of debt to equity (gearing) is regularly assessed by the Board and debt providers and set at appropriate levels.
With the significant downturn in the forestry industry and the implications this has had on the value of the Trust's properties, gearing levels are under review. Since late 2012 the Trust has initiated a program to divest certain properties with sale proceeds being applied to reduce debt. Concurrent with this divestment program, the Trust is reviewing its strategic and capital management alternatives with the objective to maximise returns to unit holders.
The Trust currently owns approximately 15,575 hectares of rural property located in Western Australia and Queensland in areas recognised for reliable rainfall and productive soil profiles.
All properties are leased to Elders Forestry. All leases contain land remediation provisions together with a rent mechanism that ensures a rental margin above the Trust’s interest costs. The leases to Elders Forestry are guaranteed by Elders Limited.
The Responsible Entity of the Trust is Agricultural Land Management Limited which is wholly owned by Elders Limited.